NABARD Grade A General Awareness, Current Affairs and Banking Knowledge Syllabus

General Awareness, Current Affairs and Banking Knowledge syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for General Awareness, Current Affairs and Banking Knowledge in NABARD Grade A, not a summary of it.

1. 1

   Indian Financial System and Institutions

   3 topics

   • Reserve Bank of India
     • Functions and monetary policy framework
     • Monetary policy tools (CRR, SLR, repo, reverse repo)
     • Inflation targeting and MPC
   • Banking Structure in India
     • Scheduled and non-scheduled banks
     • Public, private, foreign and small finance banks
     • Payment banks and cooperative banks
   • Development and Regulatory Institutions
     • NABARD, SIDBI, EXIM Bank, NHB
     • SEBI, IRDAI, PFRDA
2. 2

   NABARD: Organisation and Functions

   3 topics

   • Establishment and Mandate
     • NABARD Act 1981 and history
     • Vision, mission and organisational structure
   • Core Functions
     • Credit functions and refinance
     • Developmental functions
     • Supervisory functions over RRBs and cooperatives
   • Key Funds and Schemes
     • RIDF, LTRCF and Watershed Development Fund
     • NABARD subsidiaries (NABFINS, NABKISAN, etc.)
3. 3

   Banking and Financial Concepts

   3 topics

   • Banking Products and Services
     • Types of accounts and deposits
     • Loans, advances and NPAs
     • Negotiable instruments
   • Financial Markets
     • Money market and capital market
     • Government securities and bonds
   • Digital Banking and Payments
     • UPI, IMPS, NEFT, RTGS
     • Fintech and digital lending
4. 4

   Current Affairs and Static GK

   3 topics

   • National and International Current Affairs
     • Economic and banking news
     • Government schemes and policies
     • Awards, summits and appointments
   • Static General Knowledge
     • Important days, books and authors
     • Headquarters of organisations
   • Agriculture and Rural Current Affairs
     • Union Budget agriculture provisions
     • Economic Survey highlights

General Awareness, Current Affairs and Banking Knowledge flashcards for NABARD Grade A

24 of 50 cards from the General Awareness, Current Affairs and Banking Knowledge deck — real questions with worked answers.

1. When was the Reserve Bank of India (RBI) established, and based on which committee's recommendations?

   RBI was established on 1 April 1935 under the RBI Act, 1934, based on the recommendations of the Hilton Young Commission (Royal Commission on Indian Currency and Finance).

2. When was the RBI nationalised, and where is its central office located?

   RBI was nationalised on 1 January 1949. Its central office is in Mumbai, Maharashtra.

3. Who is the issuer of currency notes in India, and what is the maximum denomination RBI can currently issue?

   RBI issues all currency notes except the Re 1 note (issued by the Government/Ministry of Finance). The highest denomination currently issued is Rs 2000 (issuance discontinued in 2023); the highest in active circulation is Rs 500.

4. What is the Repo Rate?

   The repo rate is the interest rate at which the RBI lends short-term funds to commercial banks against government securities. A rise in repo rate makes borrowing costlier and reduces money supply.

5. What is the difference between the Repo Rate and the Reverse Repo Rate?

   Repo rate is the rate at which RBI lends to banks; reverse repo rate is the rate at which RBI borrows from banks (banks park surplus funds with RBI). Repo rate is always higher than reverse repo rate.

6. What is the Cash Reserve Ratio (CRR)?

   CRR is the percentage of a bank's Net Demand and Time Liabilities (NDTL) that it must keep with the RBI as cash reserves. No interest is paid on it, and it is a tool to control liquidity.

7. What is the Statutory Liquidity Ratio (SLR)?

   SLR is the minimum percentage of a bank's NDTL that it must maintain in the form of liquid assets such as cash, gold, or approved government securities, held by the bank itself (not with RBI).

8. What is the Marginal Standing Facility (MSF)?

   MSF is a window allowing scheduled commercial banks to borrow overnight funds from the RBI against their SLR securities, at a rate slightly higher than the repo rate, during emergency liquidity shortages.

9. What is the Bank Rate?

   The bank rate is the rate at which the RBI lends long-term funds to commercial banks without collateral. It is generally aligned with the MSF rate.

10. What is NABARD, when was it established, and what is its primary mandate?

    NABARD (National Bank for Agriculture and Rural Development) was established on 12 July 1982 on the recommendation of the Shivaraman Committee. It is the apex development bank for agriculture, rural development, and refinancing rural credit institutions. Headquarters: Mumbai.

11. Which two funds were transferred to NABARD upon its establishment?

    The National Agricultural Credit (Long Term Operations) Fund and the National Agricultural Credit (Stabilisation) Fund, earlier maintained by RBI, were transferred to NABARD.

12. What is the RIDF maintained by NABARD?

    RIDF (Rural Infrastructure Development Fund) was set up in 1995-96 within NABARD to finance rural infrastructure projects (irrigation, roads, bridges) by state governments, funded mainly by banks' shortfall in priority sector lending.

13. What is SIDBI and what is its purpose?

    SIDBI (Small Industries Development Bank of India), established in 1990 with headquarters in Lucknow, is the principal financial institution for the promotion, financing, and development of the Micro, Small and Medium Enterprises (MSME) sector.

14. What is EXIM Bank?

    Export-Import Bank of India (EXIM Bank), established in 1982, is the apex financial institution for financing, facilitating, and promoting India's foreign trade (exports and imports).

15. What does SEBI regulate and when was it given statutory status?

    SEBI (Securities and Exchange Board of India) regulates the securities and capital markets in India. Established in 1988, it was granted statutory powers through the SEBI Act, 1992. Headquarters: Mumbai.

16. What does IRDAI regulate?

    IRDAI (Insurance Regulatory and Development Authority of India), established in 1999 (statutory under the IRDA Act, 1999), regulates and develops the insurance sector in India. Headquarters: Hyderabad.

17. What does PFRDA regulate?

    PFRDA (Pension Fund Regulatory and Development Authority) regulates the National Pension System (NPS) and the pension sector in India. It became statutory under the PFRDA Act, 2013.

18. What is the SARFAESI Act, 2002 used for?

    The SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) allows banks and financial institutions to recover non-performing assets (NPAs) by taking possession of and selling secured assets without court intervention.

19. How are banks classified under the structure of the Indian banking system into scheduled and non-scheduled?

    Scheduled banks are those listed in the Second Schedule of the RBI Act, 1934 (must have paid-up capital of at least Rs 5 lakh and satisfy RBI). Non-scheduled banks are not listed in this schedule. Scheduled banks are eligible for RBI loans and clearing-house membership.

20. What are Regional Rural Banks (RRBs), and under which act were they set up?

    RRBs were established under the Regional Rural Banks Act, 1976 to provide credit to small farmers, agricultural labourers, and rural artisans. Ownership is shared by the Central Government (50%), the sponsor bank (35%), and the State Government (15%).

21. What is the difference between a NPA classification of Substandard, Doubtful, and Loss assets?

    Sub-standard: NPA for up to 12 months. Doubtful: remained sub-standard for more than 12 months. Loss asset: identified as a loss by the bank/auditor/RBI but not yet fully written off. (An asset becomes NPA when overdue for more than 90 days.)

22. What is Priority Sector Lending (PSL) and what is the overall target for domestic commercial banks?

    PSL directs banks to lend to specified sectors (agriculture, MSME, education, housing, etc.). The overall target is 40% of Adjusted Net Bank Credit (ANBC), with 18% for agriculture and additional sub-targets for weaker sections and small/marginal farmers.

23. What is the Kisan Credit Card (KCC) scheme?

    The KCC scheme, launched in 1998, provides farmers with timely, adequate short-term credit for cultivation and other needs through a single credit card/passbook, with flexible and simplified procedures. It was conceptualised by NABARD.

24. What is the Self Help Group (SHG)-Bank Linkage Programme?

    Launched by NABARD in 1992, it links informal Self Help Groups (typically of rural women) with banks for savings and credit, promoting financial inclusion and microfinance. It is the largest microfinance programme in the world.

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